Knights Ltd Wayne tells you he is planning the 30 June 2021 Audit of Knights Ltd, a company that produces and exports timber products to South East Asian countries. Knights contracts timber cutters to deliver set tonnages of logs to its mill throughout the year. The timber is then transported to Asia on charter vessels, which make an average of one trip a month. Timber is purchased in 50 hectare lots from plantations and state forests. In the past, 75% of timber was sourced from plantations, however this has fallen to 40% in the current year. The corresponding increase in timber sourced from state forests has angered environmental groups. Protests have been held in several forests, which has slowed production and frustrated the contractors, who are only paid once set tonnages of timber are delivered to the mill. These issues have meant that several shipments of timber have been delayed, angering the Japanese customers who are threatening to deduct 20% from amounts owing as compensation for lost production time. A recent downturn in the Japanese economy is also affecting forward orders, which have fallen by 15%. Wayne also says that one of Knights customers, Chip Corporation, is claiming that the latest batch of timber products it received was contaminated with a microbe. This microbe affects the physical structure of the timber, reducing its strength and durability. This has made the timber useless for heavy duty items such as china hutches and bookcases. Chip Ltd is refusing to pay its account, which is already five months overdue. Knights Ltd has launched an investigation into the allegations but has not been able to substantiate them as yet. Question 1 The business risk impact and the accounts (as well as the related assertions) most likely affected by the events outlined in relation to Knights Ltd.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Knights Ltd Wayne tells you he is planning the 30 June 2021 Audit of Knights Ltd, a company that produces and exports timber products to South East Asian countries. Knights contracts timber cutters to deliver set tonnages of logs to its mill throughout the year. The timber is then transported to Asia on charter vessels, which make an average of one trip a month. Timber is purchased in 50 hectare lots from plantations and state forests. In the past, 75% of timber was sourced from plantations, however this has fallen to 40% in the current year. The corresponding increase in timber sourced from state forests has angered environmental groups. Protests have been held in several forests, which has slowed production and frustrated the contractors, who are only paid once set tonnages of timber are delivered to the mill. These issues have meant that several shipments of timber have been delayed, angering the Japanese customers who are threatening to deduct 20% from amounts owing as compensation for lost production time. A recent downturn in the Japanese economy is also affecting forward orders, which have fallen by 15%. Wayne also says that one of Knights customers, Chip Corporation, is claiming that the latest batch of timber products it received was contaminated with a microbe. This microbe affects the physical structure of the timber, reducing its strength and durability. This has made the timber useless for heavy duty items such as china hutches and bookcases. Chip Ltd is refusing to pay its account, which is already five months overdue. Knights Ltd has launched an investigation into the allegations but has not been able to substantiate them as yet.
Question 1
The business risk impact and the accounts (as well as the related assertions) most likely affected by the events outlined in relation to Knights Ltd.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
